Price of Teak
The ITTO, or International Tropical Timber Organization publish average import/export prices in a fortnightly report called the Market Information Service. The reports include a table titled “US Imported sawn wood prices”.
These reports show the current average price for Teak. (Currently £2.30 per board foot). Somewhat higher than the £2.17 we use as the board per foot price in 25 years. These can be confirmed by going to http://www.itto.or.jp and clicking on Market Information Service - you will need to register for this service - then click on download report. Near the end of this report is a section titled “US Imported sawn wood prices” which lists the price of teak in $/m3. To convert this to a board foot price , divide by 424 (the number of board foot per m3), hence $2125/m3 becomes $5.01 per board foot. Then divide this by the current exchange rate.g. 1.07 to give you a price in GBP of £2.54 ( Remember this is todays price not the price in 6/10 etc years time).
In the market report you can also see a section titled report from the UK, in which you can see the cost of 1st ,quality Teak to be £2035-£2350/m3.
UN Hardwood Prices Historically, according to the United Nations FAO publication Forest Products Prices, the median export/import prices of teak rose at an average rate of 9.7% per year for the 18 years from 1970 to 1988 (the last year of the report), and 13.2% per year for the last four years of the report. According to the historical records of the ITTO (also available to download as above) the average growth in Teak prices from September 1997n to April 2007 has ,averaged 8.5%. Considerably higher than the 6% we use in our projections.
|